Summary results LPT Q2 2024

Logistics businesses in Q2 2024 rate the UK economic outlook at 4.3 due to slow GDP growth of 0.6%.
Business outlook and financial health are stronger, at 6.3 and 7.0 respectively.
The UK’s GDP is expected to grow by 0.4% in 2024 and 1.0% in 2025.

Supply chain issues

In Q2 2024, the logistics sector faced significant challenges, with 66.0% of respondents reporting increased transport costs as the most pressing issue.
Supply chain disruptions were also prominent, with 55.0% of suppliers experiencing delays in receiving parts, exacerbating production and delivery challenges.
Disruption at UK borders (39.4%) and additional paperwork (39.0%) further complicated logistics, likely due to ongoing EU Exit-related adjustments.
Delays in receiving goods (38.2%) and extended delivery times to the EU (30.4%) indicate that these issues continue to impact efficiency and reliability in supply chains, contributing to the overall strain on the industry.

Changing UK trade processes

Confidence in the government's readiness for the introduction of Safety and Security Declarations under the BTOM in October 2024 is low, with an average rating of 3.6 out of 10.
Businesses are slightly more confident in their own readiness, with a rating of 4.1 out of 10. Key concerns include increased bureaucracy, delays, and cost increases, which many see as unnecessary complications.
Support for a new Sanitary and Phytosanitary (SPS) and Veterinary Agreement between the UK and EU to reduce trade friction scored an average of 5.9 out of 10, indicating moderate support.
Confidence in the readiness of both government and businesses for the planned changes under the Windsor Framework from October 2024 is generally low.

Staffing and skills

Over the past six months, the logistics sector has seen significant staff turnover, particularly among van drivers (9.5%) and warehouse staff (10.5%).
There are significant challenges in filling vacancies for certain roles within the logistics sector, particularly for fitters, mechanics and technicians, where 56.1% of respondents report moderate to very severe problems.
HGV drivers also face notable recruitment difficulties, with 46.1% experiencing issues.

Warehousing

Most companies' warehousing utilisation remained stable in Q2 2024 compared to the same time in 2023.
The majority of companies report high warehouse utilisation, with 40.3% operating at 81-100% capacity and 31.2% at 61-80% capacity.
Over the past 12 months, companies have focused heavily on enhancing energy efficiency in their warehouses, with 58.2% reporting investments in this area.

Environmental, Social and Governance

Environmental, Social and Governance (ESG) principles are moderately important to logistics organisations, with an average importance score of 6.5 out of 10.
Approximately 31.6% of respondents plan to increase ESG activities in the next 12 months, reflecting a growing commitment to sustainability and responsible governance.

Logistics UK